Which statement is false about liquidity?
The more liquid an investment, the more return
The less liquid the investment, the less return
The more liquid an investment, the less return
Both A and B
The reason is that the investment that are readily convertible to cash are less risk and as a result the investors are compensated with lower returns and vice versa. So the only statement that is not false statement is option C and the statement A and B are False.
